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Apr 09, 2019
Boeing (BA, $368.33) to cut 737 Max production in a move to return to flight

Boeing (BA, $368.33) to cut 737 Max production in a move to return to flight

Boeing is cutting production of 737 Max jets. Following two crashes since October, Boeing has slashed its monthly production of its aircraft by 20% and is likely to produce only 42 a month instead of 52. This is part of the company’s adjustment in the 737 production system that aims to focus on software certification and returning the MAX to flight.

The analysts expect the production is likely to weigh on shares of the company. But, so far Boeing’s shares have held up relatively well after initially dropping to more than 10% in mid-March following the crash of an Ethiopian Airlines 737 Max 8. This second 737 crash in six months had led to a grounding situation for the aircraft.

At the time, Boeing did not feel the need to cut production. But the crashes also led to an evaluation as well as fixing of the aircraft’s software system, for which it’s likely to seek approval from FAA and other international evaluators in the coming weeks. This means that the grounding situation may well extend till June. 

Related Ticker: BA

Aroon Indicator for BA shows an upward move is likely

BA's Aroon Indicator triggered a bullish signal on July 16, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 257 similar instances where the Aroon Indicator showed a similar pattern. In of the 257 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator entered the oversold zone -- be on the watch for BA's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on July 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for BA turned negative on July 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .

BA moved below its 50-day moving average on July 09, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for BA crossed bearishly below the 50-day moving average on July 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where BA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

BA broke above its upper Bollinger Band on July 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (27.027) is normal, around the industry mean (9.915). P/E Ratio (80.949) is within average values for comparable stocks, (92.517). BA's Projected Growth (PEG Ratio) (25.640) is very high in comparison to the industry average of (3.966). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (1.713) is also within normal values, averaging (35.568).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.

Notable companies

The most notable companies in this group are GE Aerospace (NYSE:GE), Boeing Company (NYSE:BA), Lockheed Martin Corp (NYSE:LMT), Northrop Grumman Corp (NYSE:NOC), Virgin Galactic Holdings (NYSE:SPCE).

Industry description

Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.

Market Cap

The average market capitalization across the Aerospace & Defense Industry is 38.46B. The market cap for tickers in the group ranges from 4.49 to 1.63T. SPCX holds the highest valuation in this group at 1.63T. The lowest valued company is BDRPF at 4.49.

High and low price notable news

The average weekly price growth across all stocks in the Aerospace & Defense Industry was -3%. For the same Industry, the average monthly price growth was -11%, and the average quarterly price growth was -10%. HOVR experienced the highest price growth at 15%, while DFNS experienced the biggest fall at -100%.

Volume

The average weekly volume growth across all stocks in the Aerospace & Defense Industry was 43%. For the same stocks of the Industry, the average monthly volume growth was -67% and the average quarterly volume growth was -27%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 47
P/E Growth Rating: 66
Price Growth Rating: 65
SMR Rating: 79
Profit Risk Rating: 73
Seasonality Score: 2 (-100 ... +100)
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a manufacturer of jetliners, aircraft and related products

Industry AerospaceDefense

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Industry
Aerospace And Defense
Address
929 Long Bridge Drive
Phone
+1 703 465-3500
Employees
171000
Web
https://www.boeing.com
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